Adani Power Ltd will start the entire 4,620-MW proposed thermal power capacity at Mundra by February.

Quoting sources, reports said the fourth 660 MW super critical unit of the project will be commissioned this month with the final and fifth of such units to be on stream in February. The company had set up four units of 330 MW each at Mundra in the initial phases.

Considering that APL Mundra project is largely based ion imported coal— especially imports from Indonesia — the added capacity may not augur well on the company’s finances.

This is in view of the introduction of benchmark prices by Indonesia beginning September; dramatic fall of rupee against dollar coupled with recent hardening of international prices vis-à-vis the long-term tariff agreements in place between APL Mundra and different State utilities.

According to a leading Indian coal importer, irrespective of an apparent easing of global demand for energy commodities including coal, the 5,300-gcv (gross calorific value) Indonesian coal is selling at $45 f.o.b., attracting a landed (CIF) price of $59-60 a tonne in Indian ports during the last fortnight. The 6,500-gcv South African coal is holding firm at $102 f.o.b. ($119 CIF).

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